[Sandy]

On small real estate loans is there a maximum loan amount limit to where an appraisal nor an evaluation is not required for a loan? I read in regulation that there is an exemption maximum theshold of $34,200 that do not require a special HPML appraisal. I did not know if there was a exemption on non-HPML loans and to where another source of value can be provided such as a PVA card, etc.

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[Kimberly Boatwright, CAMS, CRCM]

My understanding there is only an exemption for smaller loans from Appraisals with HMPL. These dollar limits are each December based on the Consumer Price Index and effective every January. If it is a non-HPML (standard) residential real estate loans, the federal interagency appraisal rules exempt transactions of $400,000 or less from requiring a full, certified appraisal. For loans below this threshold, lenders are permitted to use an evaluation instead of an appraisal. You can find more details:
* https://www.fdic.gov/news/financial-institution-letters/2019/fil19053.html
* https://www.federalreserve.gov/frrs/guidance/interagency-appraisal-and-evaluation-guidelines.html

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